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Volatility will keep presenting investment opportunities in the mining and resources sector. But how do you know where to look? Our market analysts investigate global and Australian resource opportunities that could drive the next bull market in commodities. But most importantly, they’ll try and let you in on these insights before they become the next ‘missed opportunity’ of the investment mainstream.

Arguably two of the most important commodities to monitor — nothing quite sends world market into a flurry like the oil and gas price. To see which oil and gas stocks are worth watching, and potentially investing in, go here...

It’s been one of Australia’s biggest exports and one of the biggest money-makers for the Aussie economy. But can iron ore stocks still make money for you...or is the dream run about to end? Find out here...

Rare in demand and in short supply; gold, silver, palladium and platinum are considered the world’s most precious metals. But is the price and conditions right to invest in one – or all of these wealth preservers? Go here to find out...

Something the world will always need and consume is energy. So investing in energy stocks is a worthwhile addition to your portfolio. Go here to learn which energy sectors to watch, and those you may wish to put money into.

One of the best ways you can preserve your wealth is by investing in gold and silver bullion. Likewise, one of the best ways you can skyrocket your portfolio is to invest in silver and gold stocks. But the price of gold and silver are both prone to market swings, so having expert insight into these markets is invaluable. You’ll find such insights right here.

Gold’s poorer cousin – or is it? Whilst the silver market is highly volatile, this means you can also buy silver at a bargain when the silver price dips. For more on investing in silver and silver stocks, go here…

Looking to invest in these precious metals, but don’t know where to start? This guide to buying gold and silver will show you what you need to do, what to look out for, and when could be the best time to buy for profit.

Property bubbles have helped cause many of the major financial crises happening in the world right now. Uncover a real world view of the current property market and discover some of the best ways you can secure your wealth, in a rising or falling real estate market.

The Aussie house price boom could well be at an end, and the housing bubble about to pop. Learn the truth about the Australian housing market right here — and what you can do to protect your wealth from falling Australian house prices.

Uncover invaluable insights on global real estate markets around the world — including everything from struggling housing markets...to off-the-radar residential and commercial investment opportunities that you won’t have heard about. Go here for more...

Property investments don’t have to cost you your life savings — nor should they commit you to a lifetime of debt. Learn how you could beat regular property market returns, by investing a fraction of the usual outlay, here...

Make no mistake, the financial system is unravelling. Much of it is out of your control, but there is hope. We don’t claim to have all the answers, but we can let you know which factors affect your wealth the most. Plus, provide you with informed suggestions as to which investments could best shelter and grow your wealth in these turbulent times.

Currency markets affect everything, so it pays to follow currency moves carefully. Learn how a rise or fall in the Aussie dollar can affect your portfolio. Plus, discover the financial markets to take advantage of when major currencies like the US dollar, Euro, Yuan and Yen shift in value.

Debt bubbles and credit crunches have decimated wealth, destroyed jobs and ruined families. And the current debt crisis is escalating at an alarming pace. So how can you protect and grow your wealth in a financial crisis? More on that here...

Learn how to defend your financial assets against the wealth destroying monetary policies of the RBA, the US Federal Reserve and the rest of the world’s central banks...and discover the best ways to make money in a high or low, interest rate environment.

China’s economy has been a powerhouse in recent years. But times are a changing and China, for better or worse, is a subject of heated debate. Are there investment opportunities to be still had from China, and how will they affect your wealth at home? Find out here.

The US economy is drowning under the weight of its public and private debt. But is it too soon to call the end of this financial, military and political empire? Only time will tell. Either way, you need to make sure your investments are on the right side of the trade.

The Eurozone is in a huge mess right now. Can it hold it together or will, one-by-one, member states leave the Euro and go at it on their own? More importantly, what consequences will this have for Australia and your investments? More on that here.

Don’t just follow the news on the global economy — get an inside peek into what’s happening in developed and emerging economies around the world – and what it could mean for your investments. Go here for more.

Today's emerging markets could be the powerhouse economies of tomorrow. Go here to find out which ones are most likely to influence the world markets in the near and long term, and discover the best ways to profit from their meteoric rise.

The Wonderful Wizard of Washington

Ah Ben, you’ve done it again! US Federal Reserve chairman Ben Bernanke has moved global markets by hinting ‘something’ may happen at the next meeting of the Federal Open Market Committee in September.

Rumours are rife that QE3 is on the table. That’s why we saw such a sharp rally in the US on Friday night…

Bernanke really didn’t say much… Just that the US Federal Reserve has ‘tools’ that could keep the economy ticking over… But that was all it took…

The Dow Jones rose 1.21%.

The S&P jumped 1.51%.

And the NASDAQ leapt 2.49%.

The media pundits call it Bernanke’s ‘bazooka-in-the-pocket’ play. The logic is, if you say you have a bazooka in your pocket chances are what you want to happen will happen.

And you’ll never actually have to use your bazooka.

It’s like in The Wizard of Oz. The locals said the wizard was great and powerful. Dorothy and co. believed he had the power to give the scarecrow a brain. Because they believed, the scarecrow became one of the greatest thinkers in Oz. Even though he’d got nothing from the wizard but a bagful of sawdust stuffed in his head.

It’s the same thing with Bernanke. People believe he can save the market by pushing a button and pulling a lever. His vague talk of ‘tools’ was enough to lure buyers back into the market on Friday.

Is it 2010 all over again?

In the week following Bernanke’s 2010 speech in Jackson Hole, Wyoming, the Dow climbed 2.9%… The S&P 500 climbed 3.61%… And the NASDAQ jumped 3.59%…

That was the start of a seven-month rally that saw the NASDAQ, Dow Jones and S&P 500 put on an average of 20%…

And our own ASX200 got a 10% boost…

Will it happen this time?

Slipstream Trader, Murray Dawes, says we have now entered a game of cat and mouse with the Fed. The macroeconomic indicators are pointing south. But the market is going up because Bernanke has said he has more tricks up his sleeve.

We could see the market stage a rally ahead of the FOMC meeting in September, but odds – Murray says – the risk will be to the downside after the meeting. That is unless the Bernanke bunch embarks on a very large round of Quantitative Easing. The odds are low, but be aware that it could happen.

8 Responses to “The Wonderful Wizard of Washington”

TRB

Well AAron first post from MM that actually is very close to how the market really works.
Mr Market works on irrational perception not on facts.
Mr Market needs it’s daily dose of delusion to keep the herd happy.
So you get your daily bread of extreme comments from the false gurus.
Peter Schiff,Marc Faber,Gerald Celente,Jim Rogers,Alex Jones going into hyperinflation buy GOLD not food.
What does the bible say “Man does not live on bread alone”
Buying gold is like a mass religion, you need to buy it, to protest against the central bankers and corrupt governments of the world.
We are good people us gold bugs chosen few, we don’t want hyperinflation or a financial blow up.
Instead we buy gold to lose money and save the world.
Give me a break, you gold bugs are only buying gold for a profit. Everyday you need your daily dose of the nasty FED to feel better.
QE3 coming hyperinflation is nearly here gold going to $5000 ounce.
Nothing wrong with a profit don’t try to take the high moral ground because there is none, you need doom and gloom to make money of other peoples misery.

TRB

MM for a start I do not believe that the masses are getting trillions of dollars in cash given by the USA government.
The facts are the FED creates a electronic cheque account then buys the bond places the electronic funds in this new cheque account.
So no real cash gets to the masses as you gold bugs are always screaming money printing Zimbabwe economics.
That my friend MM is the big difference USA population do not get the real cold hard cash,In Zimbabwe they do get the cash.
The bond market vigilantes would slaughter the FED if it try massive money printing like Zimbabwe.
Interest rates would soar to 20% in no time, remember we are yet to see the bond viglantes?
The bond vigilantes do not live in Alice In Wonderland they are realist and rational thinkers.

Fly Me to The Moon

I would agree that the lions share of Fed QE (money printing) goes directly to buying bonds, and only a tiny amount ever goes directly to the masses (for “masses” substitute GEC, GM etc).

However there is no ring-fence around this liquidity – and inevitably over a period of months more & more of it leaks out into the commodity markets. This is self-evident as we can all see there has been a sharp rise in household prices that can’t be explained by excess demand or lack of supply.

M&M

Totally agree. But isn’t the intent for money to flow to create demand?

Eventually… to trickle down from an investor’s earnings which can be used in his/her demand which leads to more sales and more employment. Or to come out of bank reserves as a loan – stimulating demand.

US, and now we hear businesses in Australia, are hoarding cash….

When that’s released, there will be another bubble of speculation in a particular market (eg housing or another inflationary spike in retail goods or energy or food or health etc…..). We have to be smart enough to get in front of the curve.

Then what? Interest rates will rise to curb the effects. That might bring out the vigilantes. After all some of them want a new world order.

Again – I think it’s about creating false or unsustainable demand.

Gold is just insurance. I don’t trust money printing.

We cant have an economy where we’re all “economically speaking” satisfied by creating money and handing it to people (ok businesses and banks) when ever we want to ponsi up on the last bet.

Some investors (banks & investors) have big kahunas and are front running the pack and purchasing equities before they rise – it’s the first port of call for money sloshing around in the system.

They’re winning in this game so far – they’re good traders. I’m an investor so it’s a lot harder.

The tax payer will ultimately lose in many ways.

TRB

FMTTM your comment inevitably over a period of months more & more of it leaks out into the commodity markets.
It’s self-evident.
Is it self evident really?
Is there really a direct correlation between FED money printing and increase in commodities?
As Popper and Taleb would say give one example different a black swan your whole theory falls apart.
Between 1980 to year 2000 the FED increase the money supply 3 times commodities sunk and gold fell over 70%.
In the GFC of 2008 FED bail out many banks with trillions of dollars EARLY and still the DOW fell over 50%.
Self evident I don’t think so?
Self evident stands the test of time like honesty,integrity and kindness it does not apply to the world of nasty corrupt gold economics.

TRB

MM you assume alot of cash sloshing around looking for the next boom.
Peter Schiff the great hyperinflation guru was wrong in 2008 the money sloshing around went to pay down massive debt in US dollars.
Do you know the debts are still there?
Still too much debt around for your investment game plan and the so call smart traders like Peter Schiff cost their shareholders big money this genius had investments in Babcock and Brown blind freddy could see it was levelaged to the eyeballs in debt.
Macqaurie Bank is another sucker play for bullish smart traders.
They just ignore all the debt in the system and think don’t worry the FED will inflate it away?
Becareful the FED is yet to be sort out by the bond vigilantes and the Tea Party movement.

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